Nippon Life India Asset Management Limited Vs DCIT (Bombay High Court)
The Court quashed notices issued under Section 153C and related proceedings on the ground of limitation, holding that the satisfaction note was not recorded “immediately” after completion of assessment of the searched persons. The search was conducted in February 2021 and assessments were completed in September 2022, but the satisfaction note was recorded only in July 2024, resulting in a delay of about 21 months. Relying on the Supreme Court ruling in Calcutta Knitwears, the Court emphasized that the requirement of recording satisfaction “immediately” implies prompt action without undue delay, not merely within a reasonable time. It rejected the Revenue’s contention that subsequent action by the assessee’s Assessing Officer cured the delay. The Court held that such delay rendered the proceedings time-barred and invalid. Accordingly, notices under Section 153C, subsequent notices under Section 143(2), and related orders were set aside.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Rule. Respondents waive service. With the consent of parties, Rule made returnable forthwith and heard finally.
2. By these Petitions under Article 226 of the Constitution of India, the Petitioner challenges the validity of the Notices dated 30th August 2024 issued under Section 153C of the Income Tax Act, 1961 (for short “the I. T. Act”) for the three years, as well as the Notices dated 14th July 2025 issued under Section 143(2) of the I. T. Act and the orders on objections dated 3rd February 2026.
